Impact of Global Financial Crisis on Employment in it Industry and Employment Multiplier

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dc.categoryConference Proceedings
dc.categoryConference Proceedings
dc.contributor.authorGandhimathi, S
dc.date.accessioned2017-04-03T22:14:06Z
dc.date.available2017-04-03T22:14:06Z
dc.date.issued2012
dc.departmentEconomicsen_US
dc.description.abstractThe Indian economy looked to be relatively insulated from the global Jinancial crisis that started in August 2007 when the 'sub-prime mortgage ' crisis first surfaced in the US. In fact the RBI was raising interest rates until July 2008 with the view to cooling the growth rate and contain infationary pressures. But as the financial meltdown, morphed in to a global economic downturn with the collapse of Lehman Brothers on 23 September 2008. the impact on the Indian economy was almost immediate. Credit fow s suddenly dried-up and. overnight, money market interest rate spiked to above 20 percent and remained high for the next month. It is. perhaps, judicious to assume that the impacts of the global econpmic downturn, the first in the center of global capitalism since the Great Depression, on the Indian economy are still unfolding. The severity and suddenness of the crisis can be Judged from the IMF's forecast for the global economy. For the first time in 60 years, the IMF is now forecasting a global recession with negative growth for world GDP in 2009-10. The IMF has revised its foreca.sis downwards thrice since July 2008, and it is not yet certain that this will be the last revision. The WTO has predicted that world trade, which has virtually collapsed Jn the second half of 2008 is likely to decline by as much as nine percent in 2009-HJ. !Ve have already seen exports from worlds major exporters, like Germany, Japan and China,' plummeting by more than 35 percent in the last cpiarter of 2008. The sharp decline in economic activity is despite ihe large stiinuius. esnmaied ai more titan USDs trillion, that ULCD economies have niu in place. Yei the bad news does nut stop. To conclude, total employment by rop-iO IT services firms has slightly decreased in the first half of 2009 compared with 2008, but definitely not as strongly as in 2002. where employment dropped by up to 13%. In the first half of 2009, top-10 IT services frm employed more than 638 000 people, which is almost -I 000 employees less than in 2008 A/% of total workforce). Compared to 2007. however, employment figure still show a 4%j growth. Accenture. Cap Gemini, and Alos Origin, who together account for more than half of total employmeni in 2008 among top-10 IT service companies, have significant!)’ reduced die number of their emjiloyees in the first half of 2009 (.Accenture: -9 000, -5%: Cap Gemini: -2 000. -2%j: .-Itos Origin: -I 500. -3%,). Meanwhiie. some IT services firms such as .Affiliated Computer Services and Comptiler .Sciences Corporation continued hiring in the first half of 2009. preventing a deeper decrease in employment.en_US
dc.identifier.urihttps://ir.avinuty.ac.in/handle/avu/2641
dc.langEnglishen_US
dc.publisher.nameInternational Conference on HR CHALLENGES IN GLOBAL BUSINESSen_US
dc.publisher.typeInternationalen_US
dc.titleImpact of Global Financial Crisis on Employment in it Industry and Employment Multiplieren_US
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